Smith & Nephew Shares Jump After J&J Offer Reports
January 10 2011 - 4:06AM
Dow Jones News
Shares in Smith & Nephew PLC (SN.LN) gained more than 10%
Monday following reports the U.K. medical device maker received and
rejected a bid approach from U.S. healthcare giant Johnson &
Johnson (JNJ) late last year.
Sky News reported on its website Saturday that Johnson &
Johnson approached Smith & Nephew in December with a proposal
pitched at 750 pence a share, valuing the company at roughly GBP7
billion. It didn't say where it got the information.
The Financial Times newspaper, citing unidentified people close
to Smith & Nephew, said Smith & Nephew rejected a 750 pence
to 800 pence a share proposal as too low.
Spokesmen for Smith & Nephew and Johnson & Johnson could
not immediately be reached for comment.
At 0826 GMT, shares in Smith & Nephew were 67.5 pence or 10%
higher at 717.5 pence, making it the biggest riser in a lower FTSE
100, down 0.3%.
Smith & Nephew has been the subject of persistent takeover
speculation for years, with U.S. rivals in the market for
replacement hips and knees like Zimmer Holdings Inc. (ZMH) and
privately-held Biomet Inc. frequently touted as possible
suitors.
Johnson & Johnson also sells replacement joints through its
DePuy subsidiary.
Analysts at UBS said any bid from J&J for Smith & Nephew
would likely attract the attention of antitrust authorities in the
U.S. and Europe, who may require the companies to sell assets to
clear the deal.
Analysts at Bernstein said an approach by Biomet's private
equity owners for Smith & Nephew is more plausible. Biomet
couldn't be reached for comment.
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272;
jason.douglas@dowjones.com
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